DP World grows profits and volumes in 2014

The Dubai-based port operator saw respective increases of 11.7 percent and 8.7 percent in attributable profits and container throughput for the year.    Dubai-based DP World increased profits attributable to shareholders 11.7 percent to $675 million for the fiscal year in 2014. The port and marine terminal operator had revenues of $3.41 billion, up 11 percent compared to 2013.
   Container volumes at DP World’s terminals increased 8.7 percent 28.34 million TEUs in 2014.
   According to the latest financial statements from the company, its success in 2014 was driven primarily by “continued investment in high quality long-term assets to drive long-term profitable growth.”
   In November 2014, the company officially acquired Economic Zone World in the Jebel Ali, UAE Freezone for $2.6 billion. DP World said the acquisition “will enhance port and logistics offering to DP World customers by strengthening integration and optimizing investment,” and added, “the transaction is expected to be more than 15 percent EPS accretive in the first full year.”
   DP World invested an additional $807 million across its portfolio during the year, including adding 2 million TEUs of capacity at Jebel Ali’s Terminal 3, and beginning new projects in Mumbai, India; Yarimca, Turkey; and Rotterdam, Netherlands, expected to be complete in 2015.
   “By the end of 2015 we expect to have approximately 85 million TEUs of gross global capacity, an increase of approximately 15 million TEUs since 2012, and over 100 million TEUs of gross capacity by 2020, subject to market demand,” the company said.
   DP World Chairman, Sultan Ahmed Bin Sulayem said, “The acquisition of the Jebel Ali Freezone will allow us to further consolidate our position as the leading logistics hub in the fast growing Middle East region. This, combined with our ability to add new capacity to our global portfolio will enable us to deliver both earnings growth and shareholder value over the long term.”
   “During 2014, we opened the first phase of our new semi-automated terminal at Jebel Ali, adding 2 million TEUs of much needed new capacity in the UAE, which gives us the ability to handle more of the new generation of mega vessels,” added Mohammed Sharaf, the group’s chief executive. “2015 is expected to be a busy year for new projects as we add approximately 8 million TEUs of capacity including new facilities at Yarimca (Turkey), Nhava Sheva (India) and Rotterdam (Netherlands), with further additions to capacity at Jebel Ali Terminal 3 (UAE).
   “Whilst macro-economic conditions and geopolitical issues across some locations remain uncertain, we believe our portfolio is well positioned to deliver volume growth in line or slightly ahead of the market this year,” said Sharaf.